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www.bricktilemagic.co.za Jacques van Tonder 084 912 9245 www.bricktilemagic.com Franchise Prospectus Page1/22 Prospectus: Dear future bricktile magic owner, Thank you for your interest in the Bricktile Magic(BTM) SA Franchise opportunity. Bricktile Magic was established in 2006 to offer property owners an alternative to paint. BTM offers maintenance free solutions and revamp options to make franchise owners a good income and profit from our 11year experience. I am confident that this prospectus will allow you to make an informed decision whether this business franchise opportunity is for you. Franchisees enjoys exclusivity in their respective areas and our successful track record has made the remaining available areas high in demand. If you therefore decide to pursue this opportunity, kindly send me your application form as soon as possible. Please do not hesitate to contact me, should you have any questions. Yours faithfully, Jacques van Tonder 084 912 9245 (Franchise Owner)
Transcript

www.bricktilemagic.co.za

Jacques van Tonder 084 912 9245 – www.bricktilemagic.com – Franchise Prospectus Page1/22

Prospectus:

Dear future bricktile magic owner,

Thank you for your interest in the Bricktile Magic(BTM) SA Franchise opportunity.

Bricktile Magic was established in 2006 to offer property owners an alternative to

paint. BTM offers maintenance free solutions and revamp options to make franchise

owners a good income and profit from our 11year experience.

I am confident that this prospectus will allow you to make an informed decision

whether this business franchise opportunity is for you.

Franchisees enjoys exclusivity in their respective areas and our successful track

record has made the remaining available areas high in demand. If you therefore

decide to pursue this opportunity, kindly send me your application form as soon as

possible.

Please do not hesitate to contact me, should you have any questions.

Yours faithfully,

Jacques van Tonder 084 912 9245 (Franchise Owner)

Bricktile Magic Prospectus Page2/22

Index:

1. Executive Summary

1.1. Asking Price / Projected Return

1.2. Short description

1.3. Key deciding factors

2. About Us

3. Testimonials

4. Business description

4.1. Product / Service

4.2. SWOT analysis

4.3. Target Markets

4.4. Testimonials

5. Package description

5.1. Equipment

5.2. Business Start-up Pack

5.3. Area

6. Why would this franchise opportunity work for you?

7. Potential Financial Benefits

7.1. Explanation

7.2. Cash Flow Projection

8. Requirements

8.1. Owner skills & attributes

8.2. Premises

8.3. Equipment

8.4. Staff

9. Scalability / Growth potential

10. Marketing Strategy

10.1. On-line

10.2. Branding

10.3. Other media platforms

10.4. Community projects

10.5. Direct marketing & sales

11. Support structure provided

11.1. Equipment

11.2. Marketing

11.3. Operational

11.4. Systems

12. The Franchise Model explained

12.1. Comparison with the agency model

12.2. Franchise summary

13. Implementation process & timeline

14. FAQ

15. Conclusion

Bricktile Magic Prospectus Page3/22

Executive Summary:

Purchase Price R 295 000,00

Asset Value (Equity on your balance

sheet) R 105 000,00

Monthly agency fee charged for

support services rendered R 3 500,00 p/m.

Projected ROI (Period required to

recover the capital layout) 12 to 18 months.

Projected Nett monthly Income

(based on 250sqm application) R 123 750,00 p/m.

Short Description:

BTM has grown the past 11 years in a well-established Factory that produces Bricktiles.

Since 2006 we offered revamp solutions on properties that proves to solve many

maintenance problems property owners face. What we offer is a complete turnkey solution

to eliminate painting problems, rising damp and maintenance.

Joining our franchise module will allow you to benefit from what we offer franchisees in

terms of financial freedom and being your own boss. You will be one of a kind on your area.

Key deciding factors:

What makes BTM a highly attractive business opportunity, is our proven track record. The

past 11years of home makeovers and solving maintenance problems for property owners is

given to you in a franchise module. The success can be attributed to the best equipment

and product provided as well as superior marketing support offered to the Franchisees. Here

are some additional key factors to consider:

• Low investment and an outstanding return on investment.

• Work directly with the owner of the Franchise and the Founder of BTM

• High & growing demand for solving maintenance problems owners’ face.

• Minimal overheads e.g. work from home & no labour force required, use approved

contractors

• Our factory produces world class quality export products being made available to you

and delivered to your site.

• Bricktile Magic is the only manufacturer/installer focused on the South African market

• We provide the best after sales support on the equipment, and our operational

support team is only a phone call away.

• This is a “turn-key” business opportunity, all the school fees has been paid on your

behalf.

Bricktile Magic Prospectus Page4/22

About Us:

History:

In 2006 Juaan Myburgh(Founder of BTM SA) started the business in Kimberley

providing property owners an alternative to painting, solving rising damp problems

and retro feature walls. It became a smart solution and many property owners

started to prefer having a facebrick finish with no maintenance, without the rebuild.

The demand grew rapidly and in 2009 Jacques van Tonder (Business Developer)

joined Bricktile Magic to help the business grow. In 2012 our Bricktile Factory was

established and we soon started exporting our product. The ever growing demand

for applications on homes and properties then resulted in our Franchise Module to

service a wider South African market. In 2015 the franchise module was developed

with the aim in mind to offer franchisees a business opportunity to make money and

help grow our brand and product distribution.

Currently for the past 11 years our Kimberley Bricktile application team has done

over 100 properties and have had the monopoly share in the revamping market

solving rising damp, painting and maintenance problems.

Best knowledge in the Market:

Bricktile Magic offers decades of experience in advice to property owners. Passing on

the advice to franchisees put them in a front row seat when it comes to giving

advice to potential clients. Offering advice to property owners that sometimes

causes us not to do the deal is always welcomed by our clients. “We don’t push for

the deal, we push to establish our integrity and advice to clients, the deal comes

naturally” – Juaan Myburgh

We strongly believe and have seen that our product offers any property owner many

solutions even if it is for feature walls or complete home makeovers. Bricktile Magic

gives freedom of ongoing maintenance on properties and saves owners thousands of

Rand in maintenance.

Best on-going support structure:

Our support team consist of management & staff members, all pro’s in their

respective fields, passionate about the brand and helping you to make a success of

your business.

We have been complimented on countless occasions for our efficiency when it

comes to backup support with the product. We understand that the product is

directly responsible for your income. Without any hesitation BTM will be there on site

to assist Franchisees to get the job done!

Bricktile Magic Prospectus Page5/22

Our operations manager is mandated to respond to all your operation related

queries within the same day of making them.

As a BTM franchise owner you will work directly with the owners of the business.

Testimonials from some of

our BTM clients:

In September of 2010, I first noticed a house in our neighbourhood being done up with what I soon learned was "BRICKTILE" .After enquiring about the product and given an impressive briefing, I decided to go ahead and make use of "BRICKTILE MAGIC ". Definitely one of the best decisions made , regarding my home!! I have too date saved so much on painting and after nearly 7 years the

product still looks new! Has added value to my home and I would definitely recommend it to any interested parties. THANK YOU BRICKTILE. o Regards Keith McLaren.

l did my inside and outside with brick tile magic l am very happy with the service and the product and my house has a new look and it saved me lots on maintenance - Shirley Pretorius

Bricktile Magic Prospectus Page6/22

From the time we moved into our house thirty years ago we have had a problem with rising damp. We have had a waterproofing company from Johannesburg try and fix the problem as well as a number of local companies. About five years ago we heard about Bricktile Magic. The professional advice and workmanship of the team was greatly appreciated and we have had regular visits to ensure we are satisfied. We initially only did the front of the house, but last year decided to do the whole house and outbuildings.

I can recommend not only Bricktile Magic to add value to your house, but also Jacques and his team. Thanks a lot. o Regards Glynn and Eric Hauman

Goeie more. Jip met Bricktile magic kan n mens nie verkeerd gaan nie. Jacques en sy span gee baie goeie diens. Hulle het n paar jaar terug ons voor muur van ons erf en motorhuis oorgedoen, wat voorheen altyd afgedop en waterdamp gehad en "maintanance" moes ons aanmekaar doen. Nou is daardie gedeelte vir ons "maintanance free" en ons sal nooit terug kyk nie. Sal weer van hul gebruik maak,groete o Judith Rodrigues

For before and after pics www.bricktiles.co.za

Bricktile Magic Prospectus Page7/22

Business description:

Service/Product:

BTM offers property owners a revamp solution other than painting. We give sound

advice and offer a solution to problem areas on properties such as rising damp and

having to paint on a regular basis. We give advice on feature walls and offer

different types of finishes and colours.

BTM will give a quotation normally an estimate on site and will email a quotation for

the service and application that needs to be done on the property. After acceptance

of the quote and invoice is given with a request of 70% deposit to commence with

the work. The balance of the invoice is normally paid on the day of completion.

During the application process on site the property is prepared for the Bricktile Magic

product. Part of our success is in the preparation and the application of the product

to offer a 25year guarantee for the product to not fall off.

BTM makes use of contract workers that are factory approved for application due to

the technical application process BTM Franchise will assist in finding the correct

contractor to work with.

SWOT analysis:

Strengths:

• Brand – BTM is well known in South Africa for quality products and prompt

service

• Low overheads – the lower your expenses, the higher your net income.

• Our Factory is located in Central South Africa to allow for faster delivery of

product to our franchisees country wide to your site

• Essential service – Properties need maintenance, regular painting and will

always in most cases have rising damp problems

• Solves Rising Damp Instantly – Bricktiles is a unique product ideal for solving

rising damp.

• Straight forward – skills of the trade is supported through the franchise

system, you can be a pro in no time.

• Support – you are never alone. Bricktile will be there every step of the way to

help you grow your franchise, work directly with the franchise owners.

Weaknesses:

• Many Builders and Contractors – can offer similar product or service

• Low barrier to entry – attracting further competition.

Bricktile Magic Prospectus Page8/22

• Limited scalability – area restriction prevents expansion.

• Dependant on traffic flow – especially in bigger metropolis.

• Can become boring – straight forward business model and repetitive.

• Long hours – running on full capacity requires in excess of 8hrs per day.

Opportunities:

• Bad service by other providers – our superior service generates lots of work.

• Service Knowledge – Our service and advice comes with decades of trail and

error saving you time and money

• Painted Properties –Needs a lot of maintenance, we solve it instantly

• Rising Damp and Maintenance – we offer solutions to both

• On site Supervision – Most clients enjoy our onsite presence and gives piece

of mind

• Working on site generates opportunities – While most clients always ask for

more advice on building and other challenges they face, it allows more

income to refer trustworthy contractors

Threats:

• Weakening economy – property owners might prolong maintenance on their

property due to cash flow problems

• Unregulated industry – allows for unscrupulous operators to compete.

• Insufficient time spent on marketing & sales – (especially for the owner

operated agencies) when to mutch time is allocated to providing the service,

too little time is spent on direct marketing & sales. This will result in a

continued reliance on day to day clients, and not enough long term clients

supporting a stable income stream.

____________________________________________________________________

Target Markets:

o Property Owners / Home Owners

o Franchises and Hotels

o Schools and Government

o Town House complexes and Security Estates

o Everywhere you see painted properties is potential

This is very exciting and the target market for Bricktiles is unlimited! The past few

years BTM has done applications in all of the above markets offering a wide variety

of advice and services.

Bricktile Magic Prospectus Page9/22

Most people own a home, the home needs maintenance and we can solve long term

maintenance problems for all home owners! Giving the facebrick finish without the

rebuild is now a simple process. School areas where students rub walls with shoes

and bikes can be brick tiled and no more marks on paint is the solution.

Franchise restaurants have to revamp every 5 years and our product have made a

big mark on the franchise industry in terms of feature walls. Town house complexes

run by trustees have a yearly budget for painting and renovation. Offering them

maintenance free solutions has resulted in BTM becoming a choice of option to

rather bricktile than to paint.

Facebrick will never go out of style and will always be an attractive alternative to

paint. Rising damp problems seem to be the cancer of the result in having to spend

loads of money on solving the issue, BTM solves rising damp instantly.

If we look at what rising damp is, and why property owners cannot seem to solve it

is simple. Rising damp needs to breath, it wants to get out, almost to tame a wild

tiger, you have to give it space to “get out”. Bricktiles allow for the rising damp to

escape without the tiles falling off. The composition of the product allows damp to

escape – No other product can do this!

Bricktile does not only offer great benefits and solutions to property owners, it is a

natural original South African product, made from the best fired clay bricks in the

country!

Package description:

The purchase price of R 295 000, 00 consists of the following:

• Trailer and Equipment: R 105 000,00

• Business Start-up Pack: R 95 000,00

• Once-off Franchise Fee per Area: R 95 000,00

Equipment:

Specifications:

3 Ton Standard Trailer:

• Double Axles: 1 500kg each

• Coupler: 3 000kg

• Leaf springs: 1 500kg/set

• Wheels: 8 ply 195.14” (spare wheel included)

• Finish: Galvanised

• Payload: 2 000kg

Bricktile Magic Prospectus Page10/22

The BTM Trailer is fitted with the following tools:

1. Tools (All the general small tools needed for site applications)

2. Scaffolding 4m

3. Ladder

4. Cutting Machine

Business Start-up Pack:

We do not only provide you with the necessary printed & electronic marketing

material, the start-up pack also includes onsite training on all aspects of the

business. We train you and your driver (should you choose to employ one) on the

operational as well as basic maintenance aspects of the equipment; how to generate

business and engage with clients, and lastly how to manage the financial aspects of

the business such as invoicing and long term contracts. We provide you with the

following marketing material:

• Branding on the trailer and Vehicle.

• 10000 flyers & 500 business cards.

• A Dedicated web-page on the Bricktile website with your contact.

• 5 Branded T-shirts; 2 Caps and 1 Wind blazer.

• Branded Electronic Stationary.

Area Exclusivity:

Your BTM Franchise offers you an exclusive operating area as set out per radius per

area capita. Normally a town with 250 000 population gives a lot of opportunity for

your franchise to grow and be established!

In more dense area population an radius of 50km wil be set out and in the case of

less dense area population a radius of 100km will be set out.

Your area licence fee will secure you as the only allowed operating franchise for your

chosen area. This will allow our lead generating systems to focus your Brand in your

area and target your franchise in this area.

_______________________________________

Bricktile Magic Prospectus Page11/22

Why would this business opportunity work for you?

You don’t need to be a pro builder or contractor.

Owning a BTM franchise will give you freedom to decide your destiny.

To earn up to R60 000 profit per month for a invest of R295 000 is not to be left un

explored! BTM Franchise Head Office will assist every step of the way to help you

grow and establish your business. If you follow our business module and advice you

will be set in no time and ready to operate within days.

We offer franchisees the opportunity to tap ion the ever growing maintenance

market of properties with a simple yet “Maintenance Free” solution to property

owners

You are not alone. With over 2 decades of advice and proven track record you will

be a pro in no time!

You work on your own pace and time, you decide the money you want to make and

you are your own boss! BTM Franchise allows for freedom in decision making and

gives you support unlimited to days months or years. You work directly with the

franchise owners and can call them directly on their cell phone.

“If bricktile can work in Kimberley since 2006, and is still growing after 11years, it

can work anywhere” – Juaan Myburgh

__________________________________________________

Bricktile Magic Prospectus Page12/22

Potential Financial Benefits:

BTM - 12 Month Projections on Income and Expenses

Description

Month

1 Month 2 Month 3 Month 4 Month 5 Month 6

Opening Balance 35000 37077,5 44243,75 60587,5 81270 106291,3

Sqm Sold @ R475/sqm 50 75 125 150 175 225

Income 23750 35625 59375 71250 83125 106875

Total - Before TAX 57500 72702,5 103618,75 131837,5 164395 213166,3

Expenses Cost Per Sqm(R281,45/sqm) 14072,5 21108,75 35181,25 42217,5 49253,75 63326,25

Phone 800 800 800 800 800 800

Fuel 0 1000 1500 2000 2500 3000

Wear and Tear 500 500 500 500 500 500

Insurance 500 500 500 500 500 500

Advertising Fee 2000 2000 2000 2000 2000 2000

BTM Franchise Fee 1500 1500 1500 1500 1500 1500

Accounting 500 500 500 500 500 500

Banking 300 300 300 300 300 300

Administration 250 250 250 250 250 250

Total 20422,5

28458,7

5 43031,25 50567,5 58103,75 72676,25

Profit 3327,5 7166,25 16343,75 20682,5 25021,25 34198,75

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

140490 183866,3 231581,3 283635 340027,5 405597,5

275 300 325 350 400 450

130625 142500 154375 166250 190000 2137 50

271115 326366,3

385956,

3 449885 530027,5 619347,5

77398,75 84435 91471,25 98507,5 112580 126652,5

800 800 800 800 800 800

3500 4000 4500 5000 5500 6000

500 500 500 500 500 500

500 500 500 500 500 500

2000 2000 2000 2000 2000 2000

1500 1500 1500 1500 1500 1500

500 500 500 500 500 500

300 300 300 300 300 300

250 250 250 250 250 250

87248,75 94785

102321,

3 109857,5 124430 139002,5

43376,25 47715

52053,7

5 56392,5 65570 74747,5

Bricktile Magic Prospectus Page13/22

Notes:

Opening Balance in Month 1 is suggested working capital to start with.

Formula used in the Income line is based on total Sqm Sold @ installation price of

R475/sqm (sqm X R475)

The R450/sqm charged is a suggested selling per sqm, and it includes basic

expenses eg. Labour, Materials, Product, and Transport

Cost per Sqm is calculated as follows, as per industry standards: R281,45 see our

cost calculator

Advertising is a fixed Fee for monthly Lead Generators with Google and Facebook

Labour is paid per sqm to a contractor as per your request

No Office rental is included, assumption is made that Franchise owner operates his

business from home.

Requirements:

Owner skills & attributes:

Some of the main benefits from buying this franchise business, is that no specialised

skills are required. If you are a fast learner and have had previous experience it will

be an advantage. Within no time with our training and support you will be able to

confidently give sound advice to property owners regarding their maintenance

needs.

The application of Bricktiles is followed by our uncomplicated methods that we have

been using the past 11years. You will be a pro in no time!

Premises:

All you need is a safe place to store the trailer. We strongly advice that when

starting your business you work from home, to keep costs low and profits high.

Equipment:

Apart from the trailer & tools of this package, you need the following equipment:

1. A towing vehicle with a 3 ton towing capacity (GVM). The two most popular

vehicles used is the Ford Ranger 3,2D bakkie and the Mahindra Bolero. ( It is

Bricktile Magic Prospectus Page14/22

advisable to install a vehicle tracking device on your towing vehicle when you

plan to make use of a driver to do the work.)

2. A computer with internet connectivity.

3. A cell phone.

Staff:

One of our success models is that we are on site to give the client assurance of the

work that’s been done. Especially when we do interior applications.

We suggest that when a person is employed to be a site manager, it must be

somebody with good interpersonal skills and speak good Afrikaans and English.

Should you employ a driver to do the work, an EB licence code and basic

communication skills with clients would be requirements.

As an owner operator, doing the work yourself, there are no staff requirements.

The site staff is generally contractors that has been trained and understand our

requirements, they are not on the payroll, but only gets paid per sqm application.

Being part of the BTM Franchise family we will assist with all staff training and or

assesments to ensure that our standards and brand remains to grow strong.

__________________________________________________

Scalability / Growth potential:

There are three possibilities:

1. Expanding your area – your Franchise Licence will allow for you to operate in

an area that we outline and discuss with you (normally a 100km radius) after

6 months of operation you can acquire additional areas and will have first

option in this regard.

2. Having Monopoly – As per Franchise modules normally a successful franchisee

will buy out provinces to secure any new areas under their franchise, this

giving you all the business for your account.

3. Additional services offered – Many property owners have a need for good

service and reliable contractors. When doing applications we found that

owners of properties normally need additional work done other than the

Bricktile application, this allows extra room for more profit to sub contract

work and adding a percentage for profit.

4. Establish your Franchise with Key property owners – In many cases

throughout the past 11 years we found that our product offer town house

complex owners, buildings, schools, new malls, apartments a solution to save

Bricktile Magic Prospectus Page15/22

money in the long term of maintenance budgets. Get recurring business from

these property owners as they realise the products potential to solve rising

damp and regular paint intervals.

_______________________________________

Marketing Strategy:

BTM Franchise head Office want to establish the brand and your trailer is fully

branded with also branding for your bakkie or vehicle:

• Branding on the trailer and vehicle

• On-line enquiries.

• Word of mouth.

• Direct sales.

• Mall exhibitions

With this in mind, the marketing strategy is made up out of the following:

Branding:

Bricktile Magic SA is a well established brand in South Africa and in some parts of

Africa and South America through our exports and our website.

The concept of the branded trailer and vehicle is to provide you for more exposure

and to establish your franchise in your area, branding vehicles and trailers have

proven to be a very successful brand builder.

BTM Franchise also provides branded clothing to offer you a more professional look

and feel. Once your sites are up and running we strongly suggest branded clothing

for the contractors working on site.

On-line:

Once you have committed to the purchase of the franchise, we will provide you with

an on-line marketing strategy & SLA. In short we do SEO’s, facebook and other

online sites focused on your area. These enquiries goes directly to you via e-mail.

Your direct contact number is also advertised on the website.

Bricktile Magic Prospectus Page16/22

Other media platforms:

1. Print Media - Once you bought the franchise, we will sit and look at effective

print media in your area and allocate some funds towards a 6 month

advertising campaign. Before and after pictures of completed projects will be

advertised.

2. Mall exhibitions – During your first 2 months we will do mall exhibitions with

you to expose your presence in the area. During the exhibition flyers are

handed out and the product benefits explained. We also fill in small enquiry

forms from potential clients who want the alternative to painting their

property and generate leads through the period of the exhibition. This proves

to be very effective to establish your business in your area.

Community projects:

We strongly believe in supporting our communities through sponsors and

involvement with services. Supporting these projects proves to be good marketing

and brand building with our presence.

Doing applications for schools at cost is also good advertising for the product.

Direct marketing & sales:

We provide you with business cards & flyers. Make a habit of distributing flyers to

neighbouring properties in the streets where you are busy with applications. When

approaching home or property owners with visible rising damp problems the product

benefits sells itself.

__________________________________________________

Support structure provided:

Being part of the BTM Franchise will offer you decades of advice and support with

your establishment of your business. Being able to call the Franchise owners directly

gives you the assurance to offer property owners the best first hand advice that will

give them confidence to trust your advice.

As a franchisee you have the full support and access to our staff and owners of the

BTM Factory. In the case of solving excisting application projects we have an

application team ready to help when needed. No problem to big or to small, we do

them all” – Juaan Myburgh (founder of BTM SA)

Bricktile Magic Prospectus Page17/22

Equipment:

Your trailer comes with a compressive (all included) 12 month warrantee. In the

unlikely scenario where you experience a breakdown, we strive to have you

operational within 72 hours maximum. We have a national network of service

providers for all the components in your equipment. We ensure that parts are always

available in order to prevent any delays.

Marketing:

On-line: The main objective with our on-going marketing support service, is to make

sure you enjoy top ranking on search engines, i.e. generate as many as possible

leads from the website. (This is over and above the collective on-line marketing we

do for the BTM brand in general.) We also keep your web-page updated with

images; general content such as additional services offered; rates and testimonials

from your clients.

Material: Apart from the material provided with the start-up pack, you are welcome

to order additional items as and when you need more.

Campaigns / design work: Our graphic design team are at your disposal for any

design work you may require. They will also create campaigns on your behalf, as

and when you need it. You do need to book design time a week in advance though.

Operational:

Apart from the on-site training provided initially with the delivery of your trailer and

equipment, we have an operations manager available to assist you in all aspects of

the business via telephone consultations. Regular franchise meetings are also held

with franchisees. As mentioned Jacques van Tonder (Business Developer and

Training) and Juaan Myburgh (Founder of BTM) will be accessible via cell phone

Systems:

On-line marketing is dependent on instant gratification. Franchisees are not always

in a position to answer their phones if they are busy. We therefore have a national

call centre number as an alternative for prospective clients. Our call centre will take

a message on your behalf and send you the detail.

Our development team is mandated to continually find ways to enhance consumer

engagement. These systems will be made available to you as soon as it can be

implemented.

__________________________________________________

Bricktile Magic Prospectus Page18/22

The Franchise Model explained:

Comparison to agents or dealers model:

The module of a franchise system for the BTM franchisees biggest benefit is that we

are regulated by FASA(Franchise Association of South Africa), and it provide both

parties with benefits and modules that is supported by FASA.

Benefits of the franchise model:

Franchising provides benefits for both seller and buyer.

For franchisors, the primary benefit is the ability to use other people's money to

expand the brand more rapidly than they could either on their own or through

investors or lenders. The initial franchise fee and ongoing royalties they collect allow

franchisors to build their brand without sacrificing control to outsiders or the

pressure of repaying lenders. The fees and royalties are used to fund operations at

corporate headquarters, train and support franchisees, market and advertise the

brand, improve the quality of goods or services, and build the brand in the

marketplace.

For franchisees, benefits include:

A higher chance of success than in a sole proprietorship; shorter time to opening;

initial training and ongoing support; assistance in finding an optimal site; the selling

power of a known brand; lower costs through group purchasing; use of an

established business model; national and regional advertising campaigns; customer

lead generation through websites and centralized call centres; and a network of

peers (fellow franchisees) to provide advice and moral support through a company

intranet, annual conferences, and franchisee associations; and, increasingly,

assistance with securing funding.

The good news is that the benefits of buying a franchise are just as attractive. For

example, you will gain instant brand recognition, initial training, ongoing support and

increased purchasing power all for much less than it would cost to start an

independent company.

Bricktile Magic Prospectus Page19/22

Franchise Agreement:

In order to understand the full extent of the franchise model as well as the terms

and conditions associated to it, please refer to the franchise agreement. (Log in with

your username & password that was emailed to you, and search for “Franchise

Agreement” listed under documents as a downloadable PDF.)

__________________________________________________

Implementation process & timeline:

Event: Timeframe: Franchise Role: Franchisee Role:

Prospective franchisee

sends enquiry.

None. Reply to enquiry with

email containing a

username & password

granting the prospective

franchisee with the

relevant decision-making

documentation.

Accessing the relevant

documentation, and doing

a due diligence on the

business opportunity.

Completing and submitting

the application form.

Prospective franchisee

submits application form.

5 working days. Scrutinising the

application form sent and

responding with decision.

Replying with answers to

any potential follow-up

questions.

If the application was

successful.

5 working days. Requesting successful

applicant to submit

signed Franchise

agreement and

addendums.

Submitting signed

Franchise Agreement &

addendums.

Signed document

received.

2 working day. Countersigning

documentation and send

it to the franchisee

Sending proof of payment

for the 50% deposit

amount.

Proof of payment

received for the deposit

amount.

1 working day. Placing order with the

factory for trailer and

tools. (4 to 6 weeks to

completion)

Receive “Franchisee Info

Sheet” ( Return the

completed document as

soon as possible)

Received “Franchisee

Info Sheet”.

1 to 2 weeks. Prepare artwork for the

marketing material and

send to franchisee for

approval.

Register e-mail account if

requested on “Franchise

Info Sheet”

Sign off on artwork when

info is correct.

Setup e-mail account once

login details has been

received.

Sign off on Webpage when

info is correct.

Bricktile Magic Prospectus Page20/22

Populate Franchise

Webpage and notify for

approval.

Assist Franchisee if

needed with the setup of

his Social Media platform.

Setup Social Media

platform.

Received sign off’s. 2 to 3 weeks. Place order for the

marketing material.

None.

Receive 1 week

notification prior to

completion of equipment.

1 week. Inform Franchisee of the

completion date.

Send balance Invoice to

Franchisee

Arrange transport.

Arrange training date.

Pay balance Invoice before

equipment may leave the

factory.

Equipment delivered 1 day. Keep franchisee updated

with delivery time.

Receive equipment &

marketing material.

Sign off on all items

received.

On-site training done. 1 day. Provide the training. Receive the training.

Promote launch date. 1 week prior and 1 week

post launching date.

Assist with viral

campaign.

Notify as many as possible

people in Franchisees circle

of influence.

__________________________________________________

Frequently asked Questions:

Q: What is total price for BTM Franchise? A: R295000 +Vat We also suggest a working capital of R35000, to get started, but is not a necessity Q: What is my total monthly Fees? A: R3500+Vat

Bricktile Magic Prospectus Page21/22

Q: What do i get for my Investment in BTM Franchise: A: Refer to prospectus, you get full support from BTM to assist you to make money, fully equipped trailer, monthly advertising support, licensed area Q: How do i get my product delivered in my area? A: With our network of transport in South Africa, you will get your tiles delivered to your site or office as requested Q: How long does it take to get my product delivered? A: Our factory carries stock of the products and you will have product within 5-7 working days Q: How big is my area that i can operate my business? A: This is determined by Head Office and your self depending on your location, it is normally a 100km Radius Q: How long will it take for me to make money with a BTM Franchise? A: It takes 6 months to establish a good advertising project, but normally within the first 3 months you can start making profit It takes years to establish a good reliable business, but with our module and support we will be there every step of the way! Q: How do i pay for my franchise? A: We require a 50% deposit to secure your franchise, and your area, the balance is due prior delivery of your Trailer and Training Q: Why do i have to pay R3500pm franchise fees? A: With our support structure it helps us to serve you better and help establish your leads generating system online, to ensure you get frequent sales leads generated by our system, the monthly fee is also to offer you onsite support when needed!

Bricktile Magic Prospectus Page22/22

Q: Why do i need a trailer, can i buy without the trailer to save money? A: The trailer is part of our franchise module and it serves many purposes: 1 - It is branded and gives free marketing when trailer is driven around 2 - The trailer is fitted with all the tools you need and it can lock up 3 - It also looks very professional when you do a site and creates a visible presence

4 – You have 100% control and management over your company on wheels

_______________________________________

Conclusion:

Thank you for spending the time reading through the prospectus. It should have

answered all the questions you may have had. If there is anything you still require

clarification on, please let us know.

If you are satisfied with what you have read, and would like to join the Bricktile

Magic Family and become part of the biggest growing revamp solution on the

market, please complete the application form.

We will get back to you within 5 working days, hopefully with a positive reply!

To view all our benefits, pictures and before after video’s visit

www.bricktiles.co.za


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